While interest rates are ticking up, the yield on the 10-Year Treasury Bond is still only 2.4%. That makes it pretty hard for investors to grow their wealth over time. REITs pay decent yields, and are also investing in new properties to grow. REITs offer a compelling combination of growth and income. It will be some time before interest rates increase to the level where investors can gain yield and grow their wealth, which means REITs should remain en vogue for many years to come. Below are three REITs with compelling total return potential going forward...
A couple of years ago, mall real estate giant Simon Property Group Inc (NYSE:SPG) tried to buy smaller rival Macerich Co (NYSE:MAC) for a total offer value of $16.8 billion. MAC fought against the deal, saying it undervalued its company and growth prospects. In hindsight, the deal would have been a good one for MAC shareholders. For decades now, Tanger Factory Outlet Centers Inc. (NYSE:SKT) has successfully developed and operated outlet shopping centers throughout the United States. Realty Income Corp (NYSE:O) invests in commercial real estate in the United States. Investors really like the fact that it pays its dividend on a monthly basis. Most other firms pay it on a quarterly basis.